Nvidia Reports Astronomical Sales Growth

Revenue doubled year-on-year, chip maker says
By Newser Editors and Wire Services
Posted Aug 23, 2023 5:30 PM CDT
Nvidia Reports Astronomical Sales Growth
Nvidia co-founder, president, and CEO Jensen Huang speaks at the Taiwan Semiconductor Manufacturing Company in Phoenix on Dec. 6, 2022.   (AP Photo/Ross D. Franklin, File)

Computer chip maker Nvidia has rocketed into the constellation of Big Tech's brightest stars while riding the artificial intelligence craze that's fueling red-hot demand for its technology. The latest evidence of Nvidia's ascendance emerged with Wednesday's much-anticipated release of the company's quarterly earnings report, the AP reports. The results covering the May-July period exceeded Nvidia's projections for astronomical sales growth propelled by the company's specialized chips—key components that help power different forms of artificial intelligence such as Open AI's popular ChatGPT and Google's Bard chatbot.

Nvidia's revenue for its fiscal second quarter doubled from the same time last year to $13.51 billion, culminating in a profit of $6.2 billion, or $2.48 per share, more than nine times more than the company made a year ago. Both figures were well above the projections of analysts polled by FactSet Research. And the momentum is still building. The Santa Clara, California, company predicted its revenue for its August-October quarter will total $16 billion, nearly tripling its sales from the same time last year. Analysts had been anticipating $12.6 billion in revenue for the period, according to FactSet.

Nvidia's stock price surged 8% in extended trading after the numbers came out. The shares already have more than tripled so far this year, a run-up that has boosted Nvidia's market value to $1.2 trillion. Other stalwarts that are currently or have been recently valued at $1 trillion or above are Apple, Microsoft, Amazon, and Google's corporate parent Alphabet. Those tech giants and a long line of other firms are snapping up Nvidia chips as they wade deeper into AI. Nvidia has carved out an early lead in the hardware and software needed in the AI-focused shift, partly because its co-founder and CEO Jensen Huang began to nudge the company into what was then seen as a still half-baked technology more than a decade ago. (Read more Nvidia stories.)

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